When you’re in the business of moving goods—whether you’re distributing products across the West or manufacturing Nevada components for just-in-time delivery—reliability isn’t a luxury. It’s a necessity. That’s why more companies are looking to Northern Nevada, and specifically the I-80 corridor, as a strong base for operations.
Interstate 80 is one of the most vital freight routes in the country, connecting the ports of Northern California to the rest of the U.S. It’s a key artery for logistics—and for companies operating in or around Reno—it’s the backbone of regional and national distribution.
But what about winter? After all, I-80 crosses the Sierra Nevada, one of the snowiest mountain ranges in the West. That’s a fair concern for business owners and managers—but the data tells a reassuring story.
Over the past 15 years, snowfall at Castle Peak—a key monitoring point along I-80 that sits at ~9,000 ft elevation—has ranged from 148 inches to over 800 inches in a single season. Despite these extremes, I-80 has remained open more than 99% of the time. On average, westbound closures occur about 10 times per year, and eastbound closures about 9 times. Most of these are short-lived, with nearly half lasting less than 30 minutes.
Even during the record-breaking 2010–2011 winter, when Castle Peak received 818 inches of snow, I-80 experienced just 9 westbound and 11 eastbound closures. That’s a testament to the region’s infrastructure and the agencies that keep it running.
If your operations depend on timely deliveries and minimal disruption, this level of reliability is a game-changer. Northern Nevada offers direct access to California’s ports and consumer base—without the congestion, regulatory complexity, or high costs often found on the other side of the border.
For distributors, this means fewer delays and more predictable delivery schedules. For companies focused on manufacturing Nevada goods, it means a smoother supply chain and better control over inventory and production timelines. And for both, it means peace of mind.
Beyond I-80’s performance, Northern Nevada offers a compelling package for businesses. There’s no corporate income tax, industrial real estate is more affordable than in neighboring states, and the region is actively investing in infrastructure to support growth.
Reno, in particular, has become a magnet for logistics firms and manufacturing Nevada companies. Its central location allows for next-day delivery to nearly every major market in the Western U.S., and its workforce is growing alongside its economy.
At Street Commercial Real Estate, we work with companies every day that are looking for dependable, no-nonsense solutions for their industrial real estate needs. The numbers speak for themselves: I-80 is a proven corridor, and Northern Nevada is a reliable place to do business.
If you're considering expanding or relocating your operations—whether in logistics or manufacturing Nevada products—we’d be happy to help you explore the opportunities available in the Reno-Sparks area. Let’s talk about how your business can benefit from the kind of reliability that only Northern Nevada can offer.
Introduction:
While CMBS delinquencies in office, multifamily, and lodging have crossed 7%, industrial remains the outlier — and Reno’s market is showing both resilience and recalibration. Here's what investors, tenants, and developers need to know for the next 6–12 months.
1. CMBS Warning Signs — But Industrial Stands Apart
The commercial real estate capital markets are flashing red, with delinquency rates in CMBS (Commercial Mortgage-Backed Securities) surpassing 7% across office, multifamily, and hospitality sectors. Office leads the pack with a 10.3% delinquency rate. Lodging and multifamily are not far behind.
Yet industrial? Holding steady at just 0.5%.
That makes it the most resilient property type in the CMBS universe and a signal to investors that industrial remains the most defensive position in commercial real estate.
2. Reno’s Industrial Shift: From Tight to Balanced
Reno was once one of the nation’s tightest industrial markets. But over the last 24 months, vacancy rose from near-zero levels to over 12% as speculative supply hit the market and some tenants downsized or subleased space.
The good news? Q1 2025 posted the first positive net absorption in over a year. Vacancy ticked down slightly, and leasing activity began to recover. Landlords are holding face rents steady, but effective rents have softened through generous concessions.
3. Investor Takeaways: Capital is Selective, Not Scared
Despite macro volatility, institutional and private investors still see opportunity in industrial. Reno’s cap rates have expanded from pandemic-era lows, creating a new wave of value-driven interest.
What are they looking for?
Selective underwriting and higher yields are replacing the FOMO of 2021.
4. Tenant Advantage: Time to Negotiate
For the first time in years, tenants in Reno have options and leverage. Vacancy over 11% means more space availability and landlords willing to negotiate:
Sublease opportunities, totaling over 1.3 million square feet, give occupiers a rare chance to secure discounted short-term leases. Smart tenants are upgrading into newer facilities or consolidating operations under one roof.
5. Developers: Have tapped the Brakes, Planning emerging for the Next Cycle
With capital markets tightening and leasing velocity moderating, developers are pumping the brakes. Only ~1.5M SF is under construction in Reno now, compared to over 5M SF delivered in recent years.
Those with dry powder are:
Expect few speculative starts in the next 6–12 months unless tenant pre-commitments or new capital strategies emerge.
6. Regional Comparison: Reno vs. Phoenix, SoCal, NorCal, SLC
Reno sits in the middle: not oversaturated like Phoenix, but more volatile than coastal infill markets.
7. Final Thought: Insulated, Not Isolated
Reno’s industrial market is absorbing the shockwaves of broader CRE distress without breaking. It remains a compelling market for strategic investors, opportunistic tenants, and disciplined developers.
The fundamentals are intact, but capital psychology has shifted. In a market where fear is dictating many decisions, industrial is still the one asset class earning a vote of confidence.
Want to know where to position yourself in this cycle? Let’s talk strategy.
When it comes to maximizing operational efficiency and cutting costs in international trade, savvy businesses are always looking for an edge. One often-overlooked tool that provides a host of strategic benefits is the Foreign Trade Zone (FTZ). Whether you're importing, storing, assembling, or re-exporting goods, an FTZ can offer advantages that make a real impact on your bottom line.
Let’s break down what a Foreign Trade Zone is and why it might be the missing piece in your company’s logistics strategy.
What is an FTZ?
A Foreign Trade Zone is a specially designated area located within the United States but legally considered outside of U.S. Customs territory. These zones are typically near ports of entry and allow businesses to bring in foreign goods without immediately incurring duties or customs fees. FTZs aren’t some fringe designation- it’s like giving your supply chain a built-in rebate program.
Why Use a Foreign Trade Zone?
FTZs offer a range of benefits that can streamline your operations and significantly reduce costs:
Why does it matter now? With tariffs rising and reshoring accelerating, the FTZ isn’t just a nice-to-have, it’s a moat. And the Reno/Sparks area is ahead of the curve.
FTZs in Northern Nevada
Northern Nevada is uniquely positioned to benefit from FTZ advantages. With its strategic location and growing infrastructure, the region offers excellent logistics and distribution potential for businesses of all sizes. Companies operating in and around Reno, in particular, may find that leveraging an FTZ aligns perfectly with their growth and efficiency goals.
Who Should Consider Using an FTZ?
Any company involved in international trade might benefit from utilizing an FTZ. Industries that commonly take advantage of FTZs include:
Essentially, if your business is importing components, assembling products, and/or re-exporting goods, an FTZ could help streamline those processes and save your business money.
In addition to Zone #126, Northern Nevada boasts a myriad of benefits to businesses based here. Here’s how Reno/Sparks stacks up against other markets:
VS California: With the state’s high costs, sky-high land/lease rates, and its regulatory minefield, dozens of companies are left looking to relocate. Here in Northern Nevada, these companies are drawn to our lower costs, fast tracked- FTZ activation, and the ability to retain the same port-adjacent access.
VS Phoenix: Land is tightening in the Phoenix Valley, and on top of it, not all of that land is in-Zone. Here in Reno, there is still prime land available within Zone #126- especially in the Tahoe Reno Industrial Center.
VS Salt Lake City: Located much further inland away from major ports, and with the winter months consistently slowing down freight, Salt Lake City is losing its competitive edge. Meanwhile, Reno’s milder climate is a safer bet and retains its port-to-warehouse time to 1 day.
Want to Learn More?
FTZs aren’t just a tax tool- it’s a market edge that’s baked into the best industrial ground in the Reno/Sparks area. If you’re curious about how an FTZ could work for your business or are interested in exploring properties located within a Foreign Trade Zone, the team at Street Commercial Real Estate is here to help. We specialize in helping companies tap into the advantages of FTZs while finding the right space to grow and thrive.
California just did us a massive favor—and they don’t even realize it yet.
At this year’s NAIOP I.CON West conference in Los Angeles, one session in particular made headlines across the industrial development community. It focused on California Assembly Bill 98 (AB 98), a sweeping and controversial piece of legislation that expands design and siting restrictions for logistics facilities, imposes new truck route constraints, and effectively slams the brakes on a big chunk of infill industrial development across the state.
It was a wake-up call for developers and investors who have spent decades navigating California’s land use system. And for those of us watching from across the state line in Nevada, it was confirmation of something we’ve known for a while:
Reno is not the alternative anymore. It’s the answer.
What Is AB 98 and Why Does It Matter for Reno’s Industrial Real Estate Market?
Let’s break this down.
AB 98 is a classic example of legislative overreach passed in haste. In the final days of California’s 2023 legislative session, state leaders "gutted and amended" an existing bill and replaced it with sweeping new language that fundamentally changes how and where logistics facilities can be developed.
Some of the key takeaways from the panel at I.CON West:
And here’s the kicker: AB 98 was passed with almost no industry input. That’s why NAIOP, along with firms like CBRE, Rexford Industrial, and Ware Malcomb, sounded the alarm last week.
The Market Fallout: Entitlement Paralysis, Value Shocks, and a Flight to Certainty
The most immediate result of AB 98? A spike in uncertainty.
Developers are pressing pause on land acquisitions in prime Southern California infill markets. Entitlements that used to take 12–18 months are now stretching into multi-year ordeals with unclear outcomes. And investors—many of whom are already wary of California’s political climate—are re-evaluating their exposure.
As Patrick Schlehuber of Rexford put it, the land that used to trade at a premium for its future development potential now comes with baggage. In some cases, sites that were once the crown jewels of SoCal infill have become question marks. And in this market, uncertainty equals lost value.
In contrast, existing, fully entitled assets may see a short-term boost in value simply because new supply is throttled. But for developers, especially those with large pipeline targets or build-to-suit programs, California just became a minefield.
Why Northern Nevada—and Reno in Particular—is Positioned to Win
While California developers are dealing with policy whiplash, Northern Nevada is sitting steady with shovel-ready land, development-friendly jurisdictions, and direct freeway access to the very markets California is pushing industry out of.
1. Strategic Geography
Reno’s proximity to the Bay Area, Sacramento, and Central California markets is well-known. We’re within a half-day drive of over 10 million people, multiple ports, and major e-commerce hubs. Companies looking to serve the West Coast without having to navigate AB 98’s regulatory mess are starting to view Reno as the ideal alternative.
2. Predictable Land Use Policies
Local jurisdictions in Washoe County, Storey County (TRIC), and Fernley still have control over their planning processes. Entitlements move faster, CEQA doesn't rule the land, and local governments want industrial growth.
Compare that to California cities who now find themselves unable to approve projects they themselves support due to AB 98's state-mandated restrictions.
3. Labor and Workforce Growth
Reno has invested heavily in workforce development, including partnerships with TMCC, UNR, and regional workforce boards to build training pipelines for logistics, manufacturing, and tech-driven industries. The influx of companies and talent is creating a virtuous cycle—and attracting users who can’t find or afford the workforce they need in legacy SoCal markets.
4. Modern, Ready-to-Go Infrastructure
From fiber and electric capacity to water rights and road access, Northern Nevada industrial sites—especially at TRIC, South Reno, and Spanish Springs—are turnkey. Developers can move fast, deliver on time, and hit occupancy deadlines that are impossible under California’s current legislative climate.
5. Investor-Friendly Environment
Whether you’re deploying institutional capital or raising a syndication, Nevada’s regulatory environment offers a level of clarity and certainty that’s hard to find in California. Tax structure, political stability, and local support all create a better investment thesis—especially as California increasingly targets industrial owners and developers with restrictions and fees.
The Bigger Picture: A Shift That’s Been Years in the Making
Let’s be honest: AB 98 is just the latest in a long series of California policies that have made life harder for industrial users, investors, and developers.
But it’s also a tipping point.
Ten years ago, “California flight” was a trickle. Five years ago, it was a trend. Today, it’s a strategy.
We’ve helped tenants exit Southern California for years—citing cost, congestion, and uncertainty. Now we’re seeing the capital follow. And as that capital flows east into Reno, it’s looking for two things: certainty and speed to market.
We can offer both.
Final Takeaway: The Time to Act is Now
If you're sitting on industrial land in Northern Nevada—hold it or improve it. If you’re an occupier struggling to find certainty in California—let’s talk site selection. If you’re an investor wondering where the yield is in a slowing market—Northern Nevada might just be your strongest risk-adjusted return.
The window to get ahead of this shift is open—but it won’t stay open forever. Reno isn’t a secret anymore. And as more developers, funds, and tenants get priced out (or pushed out) of California, the smart money will already be here.
At Street CRE, we help clients navigate regional shifts like this every day. Whether you’re repositioning assets, evaluating a Nevada relocation, or just trying to understand the fallout of AB 98—give us a call. We’ll get you in the zone.
